Correlation Between Quest Products and Southern Concepts

Can any of the company-specific risk be diversified away by investing in both Quest Products and Southern Concepts at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Quest Products and Southern Concepts into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Quest Products Corp and Southern Concepts Restaurant, you can compare the effects of market volatilities on Quest Products and Southern Concepts and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Quest Products with a short position of Southern Concepts. Check out your portfolio center. Please also check ongoing floating volatility patterns of Quest Products and Southern Concepts.

Diversification Opportunities for Quest Products and Southern Concepts

0.0

Correlation Coefficient

Quest Products  Southern Concepts

Pay attention - limited upside

The 3 months correlation between Quest and Southern is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Quest Products Corp and Southern Concepts Restaurant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southern Concepts and Quest Products is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Quest Products Corp are associated (or correlated) with Southern Concepts. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southern Concepts has no effect on the direction of Quest Products i.e., Quest Products and Southern Concepts go up and down completely randomly.

Pair Corralation between Quest Products and Southern Concepts

If you would invest  11.00  in Quest Products Corp on July 24, 2025 and sell it today you would lose (1.00) from holding Quest Products Corp or give up 9.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	98.44%
Values	Daily Returns

Quest Products Corp  vs.  Southern Concepts Restaurant

Quest Products Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Quest Products Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Quest Products exhibited solid returns over the last few months and may actually be approaching a breakup point.

Southern Concepts

Risk-Adjusted Performance

Weakest

Over the last 90 days Southern Concepts Restaurant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable fundamental drivers, Southern Concepts is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Quest Products and Southern Concepts

The main advantage of trading using opposite Quest Products and Southern Concepts positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Quest Products position performs unexpectedly, Southern Concepts can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Southern Concepts will offset losses from the drop in Southern Concepts' long position.

The idea behind Quest Products Corp and Southern Concepts Restaurant pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.